The second thing is you can't have an economic benefit from the gambling itself, so we don't take a rake. You have to play in a private setting, so we run as a private club. 'And ultimately there's three things you have to do. But in the penal code, there’s a way to run a private club that gives you a defense against prosecution for illegal gambling,” said Texas Card House CEO Ryan Crow. 'In Texas, most forms of gambling are illegal. Many people will say poker rooms that are “legal” are able to operate due to a “loophole” in Chapter 47 of the Texas Penal Code. The legality of poker rooms is up in the air, depending on who you talk to. “Perhaps, there's a better place for, if it's even legal, which I think is in question.” For the city, I think we need to look at entertainment districts and ways that we could encourage people to be able to get together in a safe and legal way, not sure that this business model fits that definition though,” Mendelsohn said. 'Poker rooms are not going to be welcomed in communities where they back up the single family housing.